Federal cuts forced layoffs, hospital CEO says

Sequestration left few options

TOWN OF WALLKILL — The equivalent of 140 full-time employees were laid off Monday from Orange Regional Medical Center and its Sullivan County partner, Catskill Regional Medical Center. Those who lost their jobs include the CEO of Catskill, Fred Kuriger. He will be replaced by Catskill's Chief Medical Officer, Gerard Galarneau.

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By STEVE ISRAEL

recordonline.com

By STEVE ISRAEL

Posted May. 21, 2013 at 2:00 AM
Updated May 21, 2013 at 11:43 AM

By STEVE ISRAEL

Posted May. 21, 2013 at 2:00 AM
Updated May 21, 2013 at 11:43 AM

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TOWN OF WALLKILL — The equivalent of 140 full-time employees were laid off Monday from Orange Regional Medical Center and its Sullivan County partner, Catskill Regional Medical Center. Those who lost their jobs include the CEO of Catskill, Fred Kuriger. He will be replaced by Catskill's Chief Medical Officer, Gerard Galarneau.

Orange Regional, which opened to much fanfare almost two years ago, slashed what amounts to 80 full time employees of its 2,075 full-time workers. Catskill, which laid off 25 workers less than a year ago, cut another 60 full-time positions of its 720 employees.

Together, the job losses amount to about 5 percent of the Greater Hudson Valley Health System, comprised of Catskill and Orange. The cuts primarily were in management and non-nursing positions, according to Orange Regional spokesman Rob Lee, who said "the focus is not to affect the quality of patient care."

At Catskill, the cuts also included three executives — Barbara Gentile, vice president and chief nursing officer, Geri Orr, assistant vice president for professional services and J.P. McGuirk, director of marketing and public relations.

"It's a terrible day," said Greater Hudson Valley Health Care CEO Scott Batulis Monday afternoon, as he was walking alone outside Orange Regional on his way to Catskill.

Batulis blamed the layoffs in part on funding cuts due to federal sequestration cutbacks and reductions in government reimbursement.

"(These funding reductions) hit hard and fast; without any transition plan or conversion funding that would have allowed us to reduce costs through attrition or other means," Batulis said in a press release.

At Orange Regional, the county's largest nongovernment employer, increases in employee wages and benefits and costs for supplies and drugs also means the hospital must reduce annual expenses by $12 million, he said.

At Catskill, where patient volume has declined steadily over the years, expenses must be reduced by $5 million per year. Less than 10 years ago, Catskill had about 1,000 employees. After Monday's layoffs, there are 660 workers.

"At this time, there are no plans for further reductions," Batulis said.

News of the layoffs — among the most severe in local health care in recent memory — hit employees hard, especially coming days after employee appreciation week festivities.

"There are a lot of sad people walking around here today - if they're still here," said a hospital worker who, like many did not want to give her name.

Town of Wallkill Supervisor Dan Depew agreed, although he tried to sound an optimistic note - at least in the town that boasts about its health care industry.

"It's blow. It's a sad turn of events," he said. "But with the expansion of Crystal Run (in Wallkill) and the building of the assisted living facility, these folks will hopefully be able to find a job."